UK pound is struggling today, dropping as lackluster economic data continues to indicate that more stimulus is likely. This time, it’s about the unemployment numbers.
The UK economy has been struggling for years now, and is flirting with a triple-dip recession. That possibility just came a little bit closer with the release of the latest unemployment numbers.
The Office for National Statistics reports that the UK unemployment rate has risen to 7.9 per cent. It’s also not helping that a recent report from the International Monetary Fund indicates that slower growth is likely in the cards for the British economy.
All of this difficulty isn’t being helped by George Osborne‘s austerity measures. All that the Bank of England can do hasn’t been enough to overcome the lack of government spending. Speculation is rampant about what will happen this summer when Mark Carney takes over as BOE head.
Disappointing data is likely to continue, and to weigh on the pound, particularly as it relates to the US dollar. Without a growing economy, there isn’t much to support the pound.
At 16:09 GMT GBP/USD is down to 1.5254 from the open at 1.5362. EUR/GBP is down to 0.8553 from the open at 0.8577. GBP/JPY is down to 149.0805 from the open at 149.8600.
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